European Shares Slump Amid U.S. Tariff Concerns

European markets closed lower due to losses in technology and healthcare sectors as fears of upcoming U.S. tariffs linger. Despite this, the STOXX 600 index is on pace for its strongest quarter in two years, driven by Germany's fiscal package and investor interest in European assets.

European shares took a hit on Wednesday as technology and healthcare stocks led the decline, overshadowed by fear of impending U.S. tariffs set to take effect next week.

The wide-ranging STOXX 600 index dropped 0.7%, marking its fourth dip in five trading sessions. Particularly affected were the healthcare stocks, which reached two-month lows driven by losses in major firm Novo Nordisk. Meanwhile, the technology sector dropped around 2%, significantly affected by Tietoevry's 6.7% decrease after Morgan Stanley downgraded the firm's stock.

Despite these setbacks, the STOXX 600 is on track for its best quarter in two years, spurred by hopes surrounding Germany's fiscal initiatives aimed at boosting the largest economy in the region. This positive outlook has caught the attention of investors seeking value outside of U.S. equities, given uncertainties around the U.S. trade policy under Trump.

(With inputs from agencies.)